3D Systems hit by BofA downgrade. Stratasys, Voxeljet also off.


BofA/Merrill's Wamsi Mohan has downgraded 3D Systems (DDD -5%) all the way to Underperform from Buy, while lowering his PT to $65 from $90.

Mohan is worried 3D's organic growth rate is peaking, and that "incremental top-line growth will come at the expense of margins." He also views 3D's spending ramp (a major factor behind its recent warning) to be merely "necessary to stay competitive," is worried the company's M&A binge will dilute long-term organic growth, and expects the margin performance of high-profile partnerships with the likes of Motorola Mobility and Hasbro to be "challenged."

Rivals Stratasys (SSYS -1.4%) and Voxeljet (VJET -2%) are also lower on an up day for equities.

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Comments (26)
  • hiteshgandhi
    , contributor
    Comments (17) | Send Message
     
    good call mohan !!! 3 D is going down
    sell...sell...sell..."...
    24 Feb 2014, 10:41 AM Reply Like
  • Billiebear
    , contributor
    Comments (3) | Send Message
     
    Good call? Seriously!
    24 Feb 2014, 01:18 PM Reply Like
  • omegabonobo
    , contributor
    Comments (206) | Send Message
     
    Why are people following those guys anyways? How serious can an analyst that changes from 90$ to 65$ in a couple of weeks be ? I'm very new to trading and if I've figured something from the start it is to not follow anything any big bank or financial advisory says... :P
    24 Feb 2014, 10:42 AM Reply Like
  • RipCrackle
    , contributor
    Comments (122) | Send Message
     
    If fundamentals change you better be prepared to make quick moves in either direction... welcome to trading.
    24 Feb 2014, 10:48 AM Reply Like
  • bubba1979
    , contributor
    Comments (221) | Send Message
     
    Yep, these are short term trade monkey's, I don't trust them at all. My price target is 120 in 2 years, with big risk that anouther 3d company can take over. So I have ssys and ge too ;-) I hit a stop loss at 80.5 to sell half my position, then bought back at 70 on the way back up. This stock is not for the faint of heart. I can easily see it 50% higher though.

     

    3d space is going to grow to be huge. There will be winners and losers. I think 3d is worth a look at this valuation. They said it was high over a year ago when I first bought in, ofcourse after valuation more than doubles they are gong to claim its high.
    24 Feb 2014, 12:33 PM Reply Like
  • salsal
    , contributor
    Comments (4) | Send Message
     
    I am new on this also. But one thing is for sure. Manufacturing is not going to change, It change already!!! An the market increase potential is there and it will happen sooner than later.
    24 Feb 2014, 01:17 PM Reply Like
  • nick1200
    , contributor
    Comments (38) | Send Message
     
    Long DDD. 3D printing is fundamentally changing the dynamics of multiple industries. It's naturally going to have volatile price swings. This company is set for more growth.
    24 Feb 2014, 10:46 AM Reply Like
  • Familiar12@yahoo.com
    , contributor
    Comments (2) | Send Message
     
    While Mohan is correct in this downgrading, I believe there is a solid market for different types of 3D. Public education is required to make any product viable and I don't see much of this happening. The major TV programs are rarely touching on the subject. BIO printing would make available products that require doners, and in many cases require deaths to provide goods. Feeding the world is an impossible task and providing basic materials, some of which are available in country, would make 3D printing of produce simple and more readily available.
    My thoughts are we have only scratched the surface, and need to get universities involved in teaching the subject.
    24 Feb 2014, 10:47 AM Reply Like
  • 3D Investing
    , contributor
    Comments (1552) | Send Message
     
    "incremental top-line growth will come at the expense of margins."

     

    Incremental? consistent 30+% growth is incremental.

     

    He also failed to mention what margin. There's a huge difference between gross and net margin.

     

    Companies who does aggressive reinvestments for growth has to sacrifice earnings, or net margins. You can't have both margin and aggressive growth unless you want stock dilution or debt.
    24 Feb 2014, 10:58 AM Reply Like
  • User 17326542
    , contributor
    Comment (1) | Send Message
     
    So what would you expect from it's upcoming earning (Sometime this week)?
    24 Feb 2014, 01:18 PM Reply Like
  • 3D Investing
    , contributor
    Comments (1552) | Send Message
     
    Their ceo already told us what to expect from revenue and earnings. Do I have to spoon feed everyone?
    24 Feb 2014, 01:22 PM Reply Like
  • Pwdrskir
    , contributor
    Comments (134) | Send Message
     
    - Are they learning to 3D print more or less viable products/items/ bio-products?

     

    - Will 3D printing be in more or less demand in 3-5 yrs?

     

    - Is this purely a "short-term" balance sheet clowngrade or is it based on the future development and integration of 3D printing in the world of growing computer integration? (Ray Kurzweil, Google's new director of engineering, "Robots will be smarter than the most intelligent humans within the next 15 years...")

     

    - Has this analyst ever had to sign the front of a check in a business?
    24 Feb 2014, 12:08 PM Reply Like
  • Dean Chaykowski
    , contributor
    Comments (701) | Send Message
     
    Just another bear run, it will be shot down by longs :) lol
    24 Feb 2014, 12:14 PM Reply Like
  • bernard_k50
    , contributor
    Comments (160) | Send Message
     
    There is still a 30% short interest out there. From buy to underperform in one move? Whatever happened to HOLD? Is BOA offering the shorts a way out? Or are they gobbling up the cheap shares themselves? It's all in the game.
    24 Feb 2014, 12:21 PM Reply Like
  • Dean Chaykowski
    , contributor
    Comments (701) | Send Message
     
    definitely a game, enjoy it, fun stock to own if you don't mind playing
    24 Feb 2014, 12:30 PM Reply Like
  • Dalya11
    , contributor
    Comments (46) | Send Message
     
    This coming from a bank that pays close to nothing for dividends because it lacks control of its own commercial enterprises? I've done great betting against its analysts so far, guess I'm going to stay on my winning strategy.
    24 Feb 2014, 01:14 PM Reply Like
  • Toubz
    , contributor
    Comments (5) | Send Message
     
    Same thing the likes of Mohan did to Tesla. Look at Tesla today. Send Mohan back to India to rate the Indian stock market.
    24 Feb 2014, 01:17 PM Reply Like
  • Billiebear
    , contributor
    Comments (3) | Send Message
     
    B of A is a farce. 3 days before earnings. Yea, right. CEO stated about 3 weeks ago about lower guidance. I bought 2 days after and received 20% return. A great buy!!
    24 Feb 2014, 01:18 PM Reply Like
  • salsal
    , contributor
    Comments (4) | Send Message
     
    I am new on trading and I already experience rough rides I don't have a lot of money but I wanted to do this since 2006 but things when in the wrong direction for me. No I am a little more into this and it is not easy to make decisions when you are emotional pressure because you are looking the stock you invest in going down. But I learn my lesson. If you looking a company that has pretty much no competitor with a product that the market is pretty much virgin, You will make a lot of money.
    24 Feb 2014, 01:18 PM Reply Like
  • hookturn
    , contributor
    Comments (35) | Send Message
     
    sell when you've made some profit and buy when one of these jokers downgrades it. DDD is a great yoyo for making money
    24 Feb 2014, 02:55 PM Reply Like
  • mackcap
    , contributor
    Comments (16) | Send Message
     
    All was good 2 weeks ago & now all is bad.
    Announced same time as a step back to 100 day is needed.
    Duh
    24 Feb 2014, 01:19 PM Reply Like
  • sdtaloft
    , contributor
    Comments (2) | Send Message
     
    Free stock analysis is usually worth what you paid for it. ;-}

     

    People have to keep in mind that they don't know your personal situation. Their conclusions may be right for their clients but, totally wrong for your portfolio. They don't know your time line until retirement, goals, strategy, or your investing thesis. A lot of times the noise just doesn't apply to you.

     

    How often are the market estimates wrong? How many times have we heard this same song about 3D printing since the start of the year, even from this site? Yet, the price remains stubbornly higher than the target prices they keep spouting.

     

    Great risk comes with great reward, enjoy the ride.

     

    Definitely a roller coaster of a stock, lol.
    24 Feb 2014, 01:20 PM Reply Like
  • hookturn
    , contributor
    Comments (35) | Send Message
     
    I wouldn't trust anything BofA says, I don't care who's talking.. Have you forgotten what just happened a few short years ago? Here are two URL's anyone investing should see if you haven't already.

     

    http://to.pbs.org/IoWhnh

     

    http://to.pbs.org/1k5lRiq
    24 Feb 2014, 03:02 PM Reply Like
  • brenddoc
    , contributor
    Comments (3) | Send Message
     
    SSYS maybe in better for short term but both will be there long term. 3d printing will make its way into our universities and workplace medicine, engineering architecture etc. the downgrade is too steep and nearsighted
    24 Feb 2014, 03:16 PM Reply Like
  • Hd&Co.
    , contributor
    Comment (1) | Send Message
     
    People need to use valid information to make informed decisions about a company such as DDD. Going from buy to under-perform is preposterous, to say the least. The news is important, but it shouldn't always make people panic-especially when it comes to the stock market! Long on DDD as the world begins to comprehend the future of manufacturing and daily life in a 3 dimensional world.
    24 Feb 2014, 08:24 PM Reply Like
  • Izzy1
    , contributor
    Comments (194) | Send Message
     
    I hate to say this but DDD is in for a difficult ride. They report earnings this Friday. Most of the news has already been released. My concern is margin compression. CEO has stated over and over first we sell more printers, then we sell more high margin disposables and our profits go up. Well much of that did not happen in the last quarter. If he can explain it to the analysts satisfaction the stock will bounce back. If not BAC call of $65 will be a problem as the stock drops to $45 or $50.
    I have made significant amount of money by buying and then selling. But it may get harder for awhile.
    24 Feb 2014, 09:56 PM Reply Like
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